Asian Tea & Exports Ltd

Dear Shareholders,

Your Directors are pleased to present the Twenty Sixth Annual Report and the auditedaccounts for the year ended 31st March, 2012.

REVIEW OF OPERATIONS

During the year under review the company has recorded a turnover of Rs. 11739.42 Lacsas compared to Rs. 13055.17 Lacs in the Previous Year. The Company has recorded a netprofit to the tune of Rs.93.21 lacs as compared to Rs.96.14 lacs in the previous year.

CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

During the period under review the company has not earned out any manufacturingactivities, hence the disclosures required under the provisions of Section 217(1) (e) ofthe Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Reportof the Board of Directors) Rules, 1988 with regard to energy and technology absorption arenot applicable to your company.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Note : Total Foreign exchange earnings during the year was of USD 21.46 Millions.

PARTICULARS OF EMPLOYEE

Section 217 (2A) of the Companies Act, 1956 is not applicable as no employee is inreceipt of or entitled to receive remuneration in excess of the limits specified therein.

CORPORATE GOVERNANCE

In terms of Clause 49 of the Listing Agreement, a report on Corporate Governancetogether with the Auditors Certificate regarding the compliance of conditions of corporategovernance are annexed.

DIRECTORS' RESPONSIBILITY STATEMENT

As required under section 217(2AA) of the Companies Act, 1956, your Directors confirmthat:

1. In preparation of the Annual Accounts, for the year ended 31 st March 2012, theapplicable Accounting Standards have been followed and that there are no materialdepartures.

2. The Directors have, in the selection of Accounting Policies, consulted the statutoryAuditors and have applied them consistently and made judgments and estimates that arereasonable and prudent so as to give a true and fair view of the state of affairs of theCompany as on 31st March 2012 and of the Profit and Loss for the financial year ended 31stMarch, 2012.

3. The Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 1956, forsafeguarding the assets of the Company and for detecting fraud and irregularities.

4. The Directors have prepared the Annual Accounts on Going Concern basis.

DIRECTORS

Pursuant to provisions of the Companies Act, 1956 and the Articles of Association ofthe Company, Shri C.S.Surana, Director of the Company retires by rotation and beingeligible offers himself for re-appointment at the ensuing Annual General Meeting.

AUDITORS AND AUDITORS' REPORT

M/S Agarwal Kejriwal & Co, Chartered Accountants, the retiring auditors of theCompany, hold office until the conclusion of the ensuing Annual General Meeting and beingeligible offer themselves for re-appointment.

The notes on accounts referred to in the Auditors Report are self-explanatory andtherefore do not require any further comment.

STOCK EXCHANGE

The Company's securities are listed at Calcutta Stock Exchange Association Limited, andBombay Stock Exchange Ltd.

APPRECIATION

Your Directors place on record their deep appreciation for the continued assistance,support and co-operation extended to the Company by the Banks, Government departments,other agencies and employees at all levels.

Your Directors thank you, our esteemed shareholders, for your continued support.